Insurable Interest Canadian Insurance Blog

A new LIMRA study finds just 21% of Americans have a favorable view of the economy, down from 25% in March 2020 and falling to less than half of the 56% reported in January 2020. The January figure marked the highest consumer sentiment about the economy since LIMRA began tracking it in 2008. The study, conducted in May, shows 2 in 3 consumers believe the U.S. economy is likely or extremely likely to enter a recession this year (Note: The National Bureau of Economic Research announced yesterday that the U.S. economy entered a recession in February.) While concern about a recession has decreased and its perceived impact has lessened from March when there was so much uncertainty about the pandemic, a significant portion of consumers continue to have concerns about specific financial priorities. “Despite the 10-plus years of economic growth, many Americans struggle to achieve their financial goals,” said Jennifer Douglas, research director, LIMRA Research Quality and Performance. Prior LIMRA research indicates 40% of Americans believe they have enough saved for retirement and many express concerns about paying their mortgage and monthly bills. LIMRA’s most recent consumer sentiment survey shows, while the level of concern has fallen from March, a...

Martha Porado | June 9, 2020 When the coronavirus pushed equity markets off a cliff, Canadian defined benefit pension plans had to mobilize to address a number of concerns. The Canadian National Railway Co. pension recently shifted towards a more defensive investment strategy, said Marlene Puffer, president and chief executive officer for the CN investment division of the company, at a webinar hosted by the Association of Canadian Pension Management last week. As a highly mature plan, with about $18 billion under management, it pays out around $1 billion each year, she noted. “Being a corporate plan that’s federally regulated, solvency matters. So we were well positioned for this kind of situation. Obviously, we didn’t predict the pandemic, but we were concerned about equity valuations. And we were concerned about interest rates falling further, so we shifted our asset mix to have additional interest rate hedging in place. And we also had in place a sophisticated downside protection program related to the equity markets . . . and shock absorbers within almost every asset class that we have. And with that, we came through this period quite strongly.” Read: Where can pension funds find returns in a low interest rate environment? After making it through a...

Staff | June 9, 2020 Just half of Canadian employers said they’ve adopted a formal policy to clearly communicate their approach to disability benefits in the event of a conflict, according to a new survey by Aon. The survey, which was conducted before the coronavirus pandemic, asked Canadian employers about the disability benefits they’re offering to their employees and how those benefits are funded and administered. It found 52 per cent of respondents said they have a policy to address benefits during periods of disability. Looking at specific benefits, 95 per cent of survey respondents said they offer long-term disability benefits, 49 per cent offer short-term disability, 45 per cent offer salary continuance and 17 per cent offer weekly indemnity. Read: How will the coronavirus impact long-term disability claims? In addition, where employers offer LTD benefits, 51 per cent offer the same benefit to all employees, while 49 per cent offer a benefit that differs by employee group. For STD benefits, this breaks down into 46 per cent and 54 per cent, respectively. The survey also found 45 per cent of employers require employees to contribute to health and dental plans, with disabled members contributing at the same dollar amount as active employees. About...

Lipman also named Attorney-in-Fact for Lloyd’s Underwriters Toronto, ON (June 5, 2020) – Specialist (re)insurer Lloyd’s has appointed Marc Lipman the new president of Lloyd’s Canada, and Attorney-in-Fact (AIF) for Lloyd’s Underwriters. Marc assumes the role of AIF from Lisa Duval, who stepped in last year on an interim basis and now returns to Lloyd’s International Regulatory Affairs in London. Marc brings to Lloyd’s a wealth of industry experience and a deep understanding of the Canadian (re)insurance sector. Marc joins Lloyd’s from AIG Insurance Company of Canada, where he held a series of senior leadership roles over a span of more than 14 years.  Most recently Marc was Chief Operating Officer and acted as AIG Canada’s innovation officer, with responsibility for leading the company’s transformation efforts. He also previously served as Vice President, General Counsel & Secretary and as AIG’s Chief Legal & Regulatory Officer, working across their property, casualty, reinsurance, life, and mortgage insurance entities. In his new role, Marc will report to Hank Watkins, Regional Director & President of Lloyd’s, Americas. In addition to representing Lloyd’s before provincial and regulatory bodies, Marc will work closely with Lloyd’s distribution partners in Canada and London to facilitate the development of...

New usage-based policy enables businesses to meet surge in demand New York, NY (June 3, 2020) – Marsh, the world’s leading insurance broker and risk advisor, today announced the launch of Marsh deliveryPRO, a customizable insurance solution that enables US businesses to meet the increased demand for same-day delivery of their products more efficiently. Many grocers, delivery network companies, retailers, restaurants, and other businesses are using individual drivers as employees or in a “gig” independent contractor capacity to meet the surge in demand for delivery during the COVID-19 pandemic. In these cases, the drivers’ own vehicle is used. Current commercial auto liability insurance for such delivery can be difficult to secure and is often based on outdated models like prior year revenues, resulting in inefficient pricing. To address these issues, Marsh has collaborated with AXA XL and mobility data and analytics company Arity to create Marsh deliveryPRO, an innovative usage-based, price-by-mile insurance solution that allows businesses to pay only for the coverage they need. With deliveryPRO, Marsh clients can purchase a minimum of $500,000 in exclusive third party bodily injury and property damage auto liability capacity from AXA XL in excess of a minimum $500,000 self-insured retention for their hired...

Staff | June 8, 2020 Canadian lawyers and law firm staff now have access to the College of Applied Arts and Technology’s DBplus pension plan through an affinity arrangement between the CAAT and the Canadian Bar Insurance Association. The affinity program will make it easier for Canadian lawyers, partners, office support staff and non-legal professionals to join the DBplus. Lawyers Financial, a brand of the CBIA that serves the Canadian legal community’s financial needs, will work directly with interested employers to explain the plan’s features and benefits, help determine their eligibility and start the enrolment process. According to the CAAT, the affinity agreement is the first of its kind for the pension plan. Read: Canadian law firms to join CAAT’s DBPlus pension plan “We’re excited about this fresh approach to working with organizations interested in joining CAAT,” said Derek Dobson, chief executive officer and plan manager for the CAAT pension plan, in a press release. “Through DBplus and the affinity program with Lawyers Financial, we are making secure lifetime pensions a reality for members of the legal community in Canada.” Dawn Marchand, president and CEO of CBIA/Lawyers Financial, noted in the release that many in the legal community don’t have any pension. “Lawyers Financial’s affinity...

Latest acquisition expands DKI Canada’s presence in British Columbia Oakville, ON (June 2, 2020) – Chris Schmidt, CEO of DKI Canada, is proud to announce that Precision Restorations has joined DKI Canada. Randy Klann is the founder and owner of Precision Restorations Inc., a leading provider of full-service property restoration in B.C.’s Metro Vancouver and Fraser Valley for over 20 years, and alongside his staff of professionals, developed, sustained and grew a business, earning a reputation as a service-oriented organization based on operational excellence and quality workmanship on which customers can rely. Many customers of Precision Restorations DKI have been supporters since operations began in 1998 and are enthusiastic to continue their support of Precision Restorations DKI as it enters its next stage in joining and being welcomed into the DKI organization. “We are eager to welcome Precision Restorations to DKI Canada, they are a great fit with our organization, having a solid reputation and are well respected in the Vancouver market,” said Adam Tzarik, Vice President, Business Development. “The addition of Precision Restorations DKI aligns with our strategic plans to continue to enhance DKI’s recognition in the marketplace as the service provider of choice driven by performance,” says Tzarik....

Staff | June 8, 2020 The British Columbia Investment Management Corp. is touting its 2019 environmental, social and governance successes in its annual ESG report. Some highlights from the year include that it finalized the introduction of a new corporate-wide ESG strategy including priorities and procedures for ESG reviews across all asset classes. As part of the strategy, the BCI’s public markets team completed ESG reviews of 173 companies, an increase of 170 per cent compared to 2018. Working with others, the organization also participated in 11 collaborative engagement initiatives, covering 1,188 companies, which is an increase of 203 per cent compared to the previous year. Read: BCI must take more action around environmentally issues: think-tank “Integration of environmental, social and governance matters is an essential part of what we do and who we are at BCI. It is integral to our analysis — both before and after making an investment,” said Jennifer Coulson, vice-president of ESG in public markets at the BCI, in a press release. “The 2019 ESG annual report demonstrates how BCI, in method and practice, continues to prioritize ESG matters, with the expectation that our efforts will lead to greater stability and integrity within the financial system.” On the...

Current COVID-19 crisis must not overshadow need to move to low-carbon future: Swiss Re 2020 SONAR report Intergenerational tensions, supply chain disruptions and the fragility of public healthcare are among the risks and trends amplified by the COVID-19 pandemic The coronavirus outbreak showed that societies weren’t sufficiently prepared, and that broad risk awareness is crucial for proper risk management; SONAR contributes by flagging emerging risks and fostering dialogue The current crisis shouldn’t overshadow the need for the world to transition to a more sustainable economy and a low-carbon future, and the insurance industry can play a pivotal role in this The report discusses new and changing risks in the context of long-term macro trends and turbulent times; specific topics highlighted include increased cyber risk from so-called edge computing, the boom of e-cigarettes and the lack of long-term experience with new and more sustainable building materials Zurich, Switzerland (June 4, 2020) – New risks and trends accentuated by the COVID-19 pandemic are emerging, but the current crisis shouldn’t overshadow the need for the world to transition to a more sustainable economy and a low-carbon future, according to the latest SONAR report from Swiss Re Institute. The recession caused by the containment...

InsuranceHotline.com survey Toronto, ON (June 2, 2020) – Only one in four Canadian auto insurance customers reports receiving an offer of rate relief from their insurer, according to a new survey by InsuranceHotline.com. In the wake of the COVID-19 lockdown, auto insurers offered rate relief measures to their customers to help them manage the financial challenges they face paying their auto insurance bills. These rate relief measures ranged from rebates and premium discounts to payment deferrals and waiving non-sufficient fund fees for missing payments in March and April. According to a recent online InsuranceHotline.com survey of Canadian drivers, only 25% of respondents say they were offered rate relief from their auto insurer, compared to 64% who say they were not. Another 12% of respondents say they are not sure. Furthermore, of drivers who received some form of relief, 33% regard the measures as helpful, but 64% consider them insignificant. That result begs the question what consumers may do. Will they shop around for a different auto insurance company or not? On that score, the respondents are split: 41% say they are not likely to shop around while 39% say they are; 20% say they are unsure. Breaking those numbers down...